Graphite India Q1FY26 Net Profit Surges to ₹145 Cr; Announces ₹600 Cr Expansion Plan for Electrode Capacity

Mumbai, 1 August 2025: Graphite India Ltd (NSE: GRAPHITE | BSE: 509488) has reported a sharp rebound in its standalone net profit, which climbed to ₹145 crore in Q1FY26, up from ₹62 crore in the preceding quarter (Q4FY25). The company has also greenlit a ₹600 crore capital expenditure plan to scale its graphite electrode capacity by 25,000 TPA, signalling a forward-looking strategy to meet evolving global demand.

Standalone Net Profit Jumps 134% QoQ to ₹145 Cr Despite Flat Revenue

Graphite India’s standalone net profit surged +133.9% QoQ to ₹145 crore in Q1FY26, recovering strongly from ₹62 crore in Q4FY25. This turnaround comes despite largely flat revenue from operations, which stood at ₹643 crore, marginally down from ₹645 crore in the previous quarter. Compared to the same quarter last year, net profit declined 29.3%, with revenues also dipping 4.3% YoY.

The rise in profitability was supported by better cost controls and a lower inventory write-down on graphite electrodes, which dropped to ₹75 crore in June 2025 from ₹110 crore in March 2025, indicating some stability in pricing pressure.

Consolidated Net Profit Rises 168% QoQ to ₹134 Cr Even as Revenue Dips 8.7% YoY

On a consolidated basis, Graphite India posted a net profit of ₹134 crore for Q1FY26, a substantial increase from ₹50 crore in Q4FY25. However, compared to Q1FY25, net profit was down 43.5%, while revenue from operations fell 8.7% YoY to ₹665 crore. Total income rose 12.7% QoQ, but declined 11.6% YoY, reflecting an uneven recovery across geographies and product segments.

₹600 Cr Electrode Capacity Expansion to Add 25,000 TPA in Two Phases

The Board has approved a ₹600 crore expansion project that will increase the graphite electrodes manufacturing capacity by 25,000 tonnes per annum (TPA). This will take the total domestic capacity from 80,000 TPA to 1,05,000 TPA, enhancing Graphite India’s position in the global market.

Project Timeline and Structure:

• Phase 1: Addition of 13,000 TPA in the next 12 months
• Phase 2: Remaining 12,000 TPA to be added over 36 months
• Total Investment: ₹600 crore (₹100 crore allocated for renewable power)
• Funding Source: Through internal accruals and debt

This expansion aims to cater to the anticipated revival in global graphite electrode demand, particularly in the steel and industrial sectors.

Segment Revenue Flat, But Cost Management Boosts Profits in Electrode Division

In the standalone segment-wise breakdown:

• Graphite & Carbon revenue stood at ₹576 crore, slightly lower than ₹580 crore in Q4FY25.
• Steel revenue dropped to ₹51 crore, while others increased to ₹17 crore.

Despite pricing challenges, the Graphite & Carbon segment delivered a sharp recovery in profits. Profit before interest and tax (PBIT) from this segment reached ₹35 crore, mainly due to efficient cost management.

Additionally, un-allocable net income of ₹130 crore played a pivotal role in boosting the company’s pre-tax profit during the quarter.

Share Price Falls 7.98% Post Q1 Results and Expansion News Despite Profit Jump

Graphite India’s stock ended the day down 7.98% at ₹527.05 on 1 August 2025 at 3:30 pm IST, shedding ₹45.70 despite reporting a quarterly profit surge and announcing an aggressive expansion plan. The stock opened at ₹574.00 and hit an intraday low of ₹518.30, suggesting investor caution over near-term pricing pressure and capital spending. The company’s market capitalisation now stands at ₹10,301.2 crore, with a P/E ratio of 22.28 and a dividend yield of 2.09%.

Key Performance Metrics Reflect Mixed Trends Amid Profit Recovery

Graphite India’s key metrics present a mixed outlook. The company has a market capitalisation of ₹10,301.2 crore, with a relatively low P/E ratio of 22.3 and a price-to-book ratio of 1.8, indicating undervaluation. Its PEG ratio stands at –0.5, signalling negative growth expectations. Institutional holdings dropped to 15.08%, down 0.89%. While revenue growth declined –7.5% YoY and operating revenue fell –13.2%, the company recorded a 212.5% surge in net profit growth YoY. However, the operating profit margin remains low at 5.9%, with return on equity at 7.9% and return on assets at 6.4%, both below the industry median.

About Graphite India: Leading Domestic Manufacturer of Graphite Electrodes With Global Reach

Graphite India Ltd is one of India’s foremost producers of graphite electrodes, which are critical components in electric arc furnaces used in steel production. The company is listed on NSE and BSE, and its operations span across India and Europe, including steel and carbon specialty segments via its subsidiaries.

As per the regulatory disclosure norms, these quarterly results were reviewed under Regulation 33 of SEBI’s (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the company’s auditors have issued an unmodified review opinion.

REF:https://nsearchives.nseindia.com/corporate/GILKOLKATA_01082025142023_RESULT30062025_OPT.pdf

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